U.S. Dollar Falls On Absence Of Immediate Trump's Reciprocal Tariff Imposition

(RTTNews) - The U.S. dollar weakened against other major currencies in the European session on Friday, as investor sentiment was buoyed by hopes of a resolution to the Ukraine war and President Trump's decision to delay the implementation of his much-hyped additional tariffs on foreign goods. Fears of an impending worldwide trade war have subsided in light of this scenario.

U.S. President Donald Trump has signed a Presidential memo on reciprocal tariffs for more balanced trade, with Howard Lutnick, Trump's Commerce Secretary nominee, saying he anticipates the investigation will be complete by April 1.

It is then up to Trump to decide, as of April 2, when to enact any of the new recommended tariffs, he said.

In the European trading today, the U.S. dollar fell to nearly a 3-week low of 1.0488 against the euro and a 1-1/2-month low of 1.2596 against the pound, from early highs of 1.0447 and 1.2550, respectively. If the greenback extends its downtrend, it is likely to find support around 1.09 against the euro and 1.29 against the pound.

Against the yen and the Swiss franc, the greenback dropped to a 2-day low of 152.40 and an 8-day low of 0.9012 from early highs of 153.10 and 0.9050, respectively. The greenback may test support near 150.00 against the yen and 0.89 against the franc.

Against Australia, the New Zealand and the Canadian dollars, the greenback slipped to nearly a 2-month low of 0.6345, nearly a 3-week low of 0.5711 and more than a 2-month low of 1.4157 from early highs of 0.6310, 0.5676 and 1.4201, respectively. The next possible support for the greenback are seen around 0.64 against the aussie, 0.58 against the kiwi and 1.40 against the loonie.

Looking ahead, Canada manufacturing and wholesale sales data for December, U.S. import and export prices data, retail sales and industrial production for January, U.S. business inventories for December and U.S. Baker Hughes oil rig count data are slated for release.